CHEAP MONEY FOR FARMERS

Southland Times, Issue 23548, 30 June 1938, Page 6

CHEAP MONEY FOR FARMERS

GOVERNMENT’S CLAIMS DISPUTED (From Our Parliamentary Reporter) WELLINGTON, June 29. Claims by the present Government that it had provided cheaper rates of interest for farmers were challenged by the Hon. Sir Alfred Ransom (Nat., Pahiatua) during the debate on the Imprest Supply Bill in the House of Representatives today. “The Prime Minister recently made what has been described as a goodwill mission,” Sir Alfred said, “but so far as his visit to my electorate was concerned it was an out-and-out political, campaign. At times the Prime Minister must have forgotten that I was on the platform because I cannot conceive that he would have made many of the statements he did, had he realized I was there. He appeared to imagine that the member for Pahiatua,, was a member of the Labour Party.” Sir Alfred said the Prime Minister had claimed that the Governments policy of cheap money had been of immense benefit to the farmer. Mr Savage had also said in one of his speeches that the National Party favoured high interest rates. “Before this Government came into office the rates of interest had been reduced,” said Sir Alfred. “All the reductions were not' made during the term of this Government. For the Prime Minister to get up in my presence and. I say that his Government had given the farmers cheaper money was outrageous in the extreme. The Minister of Finance (the Hon. W. Nash) has admitted that he has been able to hold the rates as he found them. The only reduction made by the present Government was that in respect to the Reserve Bank and only the Government can borrow from that source. I wonder i if the money offered at 3J per cent, to local bodies for housing purposes comes from the Reserve Bank. If it does, the Government is making a clear 2 per cent. The Government talks about usury but it should look at its own record before criticizing others.” Sir Alfred said that any amount of money was awaiting investment but because of a lack of confidence in the present Government the people were afraid to risk their capital in industrial enterprises. Big sums of money were leaving the country for investment abroad.